If you’re hoping to buy your first home before the end of the year, you may want to add new construction communities to your search.
As the year winds down, some builders may offer incentives to help sell homes that are ready or nearly ready for move-in. Depending on the community, those incentives could include mortgage rate buy-downs, upgrades or other offers that make a home more appealing.
But before you decide whether a new build is right for you, there are a few things to consider beyond the incentives.
Why Builders May Offer Year-End Incentives
Builders often have sales goals and homes they’d like to get under contract or close before the year ends. That means buyers may find opportunities to negotiate, particularly on homes that are already complete or close to completion.
Some incentives you may come across include:
Mortgage rate buy-downs that help reduce your interest rate for a period of time or for the life of the loan.
Closing cost assistance to help with some of the upfront expenses of buying.
Upgrades or included features that may otherwise add to the purchase price.
Offers vary by builder and community, and some may require you to use the builder’s preferred lender. Be sure to review the terms and compare the total costs before deciding which option works best for you.
Think About How Long You Plan to Stay
A new construction home can be an exciting option, but it’s helpful to consider your timeline.
If you decide to sell while the builder is still constructing and selling homes in the same community, your home may compete with brand-new homes nearby. The builder may also be offering incentives to buyers that you might not be able to match.
If you plan to stay until the community is complete—or longer—that competition may be less of a concern. Before buying, ask the builder about the community’s construction timeline and consider how it fits with your plans.
Ask About Property Taxes on the Completed Home
One detail that can surprise new construction buyers is the property tax estimate in their initial payment breakdown.
In some cases, the current tax amount may be based on the value of the land before the completed home is reflected in the appraisal. Once the property is reassessed, the taxes—and potentially your monthly payment—could increase.
When reviewing your budget, ask your lender and real estate agent to help you estimate what the taxes may look like once the home is complete. An estimate isn’t a guarantee, but planning ahead can help you prepare for a more realistic monthly payment.
Find the Right Opportunity for You
New construction incentives can make buying a home more accessible, but the best deal is one that works for your budget and your long-term plans. Take time to compare communities, understand the terms of any incentives and ask questions about the costs of owning the home.
If you’re thinking about buying your first home in the Austin area, contact us. We’d love to help you explore your options and find a home that fits your goals.
